DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

July 29, 2016

MEMORANDUM FOR SUPPLY DISCREPANCY REPORT (SDR) AND SUPPLY 

PROCESS REVIEW COMMITTEE (PRC) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1221, 

Mandatory Supply Discrepancy Report (SDR) for DLA Distribution Center Receipts 

with no Prepositioned Materiel Receipt (PMR) (Supply/SDR)

The attached change to DLM 4000.25, Defense Logistics Management Standards, is 

approved for implementation. 

Addressees may direct questions to DLMSO_SDR@dla.mil, Ms. Ellen Hilert, DOD 

SDR System Administrator, e-mail: ellen.hilert@dla.mil, or Mr. Ben Breen, SDR Alternate,

e-mail: benjamin.breen@dla.mil. All others must contact their Component designated 

Supply PRC representative or SDR Subcommittee representative available at: 

https://www.dlmso.dla.mil/CertAccess/SvcPointsPOC/allpoc.asp.

 

HEIDI M. DAVEREDE

Director

Defense Logistics Management 

Standards Office

Attachment

As stated 

cc: 

ODASD (SCI)
Attachment, ADC 1221

Page 1

ADC 1221

Mandatory Supply Discrepancy Report (SDR) for DLA Distribution 

Center Receipts with no Prepositioned Materiel Receipt (PMR)

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Technical POC: DLA HQ, J-345 IM, Troy Brown, Telephone COMM: 709-767-

3979, email: troy.brown@dla.mil

b. Functional POC: DLA HQ, J-345 IM, Troy Brown, Telephone COMM: 709-767-

3979, email: troy.brown@dla.mil

2. FUNCTIONAL AREA: Supply

a. Primary/Secondary Functional Area: SDR and PMR

b. Primary/Secondary Functional Process: Due-in and Receiving

3. REFERENCES:

a. DLM 4000.25-2, Military Standard Transaction Reporting and Accountability 

Procedures (MILSTRAP), Chapter 4

b. DLM 4000.25, Defense Logistics Management Standards (DLMS), Volume 2, 

Chapter 12 and Chapter 17

c. Approved DLMS Change (ADC) 158, Requirement for Prepositioned Materiel 

Receipt (PMR) Transactions, dated June 27, 2005

d. DLAI 4145.4, et al, Joint Service Instruction for Stock Readiness, dated November 9, 

2012

4. APPROVED CHANGE(S):

a. Brief Overview of Change: This change establishes a requirement for DLA 

Distribution Centers to send an SDR to the owner/manager when the distribution center 

processes a receipt without a PMR, for materiel owned by that organization. This change is 

applicable to all types of procurement and non-procurement source receipts. Additionally, DOD 

WebSDR will prepare and disseminate a monthly report delineating SDRs prepared by DLA 

Distribution Centers indicating lack of a PMR. 

b. Background:

(1) MILSTRAP, Chapter 4, C4.3.1 (Reference 3.a.) directs owners and managers 

of materiel to use a PMR to provide maintenance and storage activities advance notification of 

materiel due in.
Attachment, ADC 1221

Page 2 

(2) DLMS Volume 2, Chapter 17 (Reference 3.b.) directs that new procurement

receipts without a “due in” (PMR) be reported as a discrepancy and other unexpected receipts

may only be reported as discrepant by prior direction of the owner/manager. This guidance is

based upon ADC 158 (Reference 3.c.) signed in June 2005 with a staggered implementation 

because Component legacy systems could not be modified at the time to provide a PMR and the 

generation of SDRs for no PMR would provide little or no gain. This was 11 years ago and the 

intent was that Component systems would eventually be updated to provide a PMR. However, 

due to lingering Component system and process deficiencies, DLMS guidance to expand the 

SDR requirements to all receipts was deferred.

(3) DLA Distribution currently requires DLA Distribution Centers to generate an

“information only” SDR when the distribution center receipts for materiel without a PMR and no 

other discrepancy applies, regardless of the type of shipment (procurement and non-procurement

source). DLA Distribution implemented this process change in the summer of 2014 to provide 

feedback to owning ICPs when materiel arrives at a distribution center without PMR. 

(4) DLAI 4145.4 (Reference 3.d.) (Page 16, Table 5) identifies a requirement for

generating an “information only” SDR when missing a PMR is the only discrepancy for Service 

Owned receipts. This ADC aligns the DLMS guidance with the DLA Instructions.

c. Approved Change in Detail:

(1) Document the requirement for DLA Distribution Centers to submit an

informational SDR using Discrepancy Code Z3 (distribution center receipt not due-in) and 

Action Code 3B (discrepancy reported for corrective action and trend analysis; no reply 

required) when the depot receipts materiel and no discrepancies other than no PMR are noted. 

The SDR is required regardless of the type of shipment. Discrepancy Code Z3 will continue to 

be used in conjunction with other discrepancies and other action codes when applicable. 

(2) Generate a monthly report from WebSDR to be e-mailed to designated

Component representatives listing SDRs containing Discrepancy Code Z3 (as first, second, or 

third discrepancy code value). WebSDR will distribute this report automatically to the Army, 

Navy, Air Force, Marine Corps, and DLA SDR Process Review Committee (PRC) primary and 

alternate members, as well as any other designated representative. With the exception of DLA, 

each Component will receive only SDRs addressed to that Component. The DLA report will 

contain a separate “Other” section for any SDRs that cannot be attributed to DLA or the listed 

Military Services. WebSDR will format the report in the same manner as the standard WebSDR 

management report detail level display (planned enhancements to the detail level listing should 

also be applied to this report). Data content will be comparable to the detail level listing to 

include the WebSDR control number and all Service-assigned control numbers, submitter, the 

action activity, document number/suffix, procurement data when applicable, discrepancy codes, 

action code, reply codes, and relevant dates. The “No PMR” report will be run by the fifth of the 

month to include SDRs generated in the prior month. 

Staffing Note: DLMSO will provide Supply and SDR PRC primary/alternate member contact 

information to Transaction Services for establishing the initial distribution list. Components may 

provide additional POCs to DLMSO and Transaction Services at any time. 
Attachment, ADC 1221

Page 3

d. Revisions to DLM 4000.25 Manuals:

(1) Revise DLM 4000.25, Volume 2, Chapter 17, Supply Discrepancy Reporting:

“C17.3.6. Distribution Center Receipt with no Due In. DLA Distribution Centers will 

report receipt of unscheduled materiel from new procurement and non-procurement sources to 

the owner/IMMmanager, regardless of condition of materiel, as a discrepancy. Other 

unexpected materiel receipts, including returns and/or redistributions that are not ICP/IMM 

directed, and unscheduled returns to/from maintenance. may be reported by prior direction of the 

owner/IMM.”

(intervening text not shown)

“C17.4. MANAGEMENT EVALUATION

C17.4.1 Purpose. The supply discrepancy reporting program is designed to promote 

evaluation, correction, and improvement of logistics operations. To accomplish this objective, 

discrepancies as specified in this publication must be reported and investigated in accordance 

with established policies and procedures. DoD Components must institute SDR quality programs 

that will include periodic reviews to assess the accuracy and quality of work processes applicable 

to supply discrepancy processing. In addition, DoD Components must require, as a minimum, 

semi-annual summary reporting to an appropriate headquarters for review and analysis. The DoD 

Components unable to support the full scope of the required data collection under legacy systems 

must incorporate this reporting requirement under business system modernization efforts. The 

DoD WebSDR management reports and canned queries may be used to supplement internally 

prepared reports. To facilitate management evaluation and corrective action, WebSDR will 

prepare and disseminate focused content reports to DoD Component representatives for 

specific areas requiring additional attention. Focused content reports include several reports 

highlighting discrepancies identified by transshippers and a report listing DLA Distribution 

Centers SDRs indicating lack of a prepositioned materiel receipt (PMR). DoD Components and 

USTRANSCOM must monitor SDR program performance applicable to transshipper SDRs. 

DCMA must monitor reported discrepancies applicable to procurement source shipments. Data 

collected must be sufficient to enable monitoring activities to:

C17.4.1.1. Identify trends.

C17.4.1.2. Establish volume and dollar values of SDRs.

C17.4.1.3. Bring management attention to problems with shipping activities as 

necessary.

C17.4.1.4. Prevent recurrence of discrepancies.

C17.4.1.5. Measure quality and responsiveness of action activities.

C17.4.1.6. Assess vendor performance to ensure compliance with contract 

requirements, identify and correct recurring issues, and incorporate SDR metrics during 

consideration of future contract awards.
Attachment, ADC 1221

Page 4

C17.4.1.7. Promote timely QAR performance to prevent delays in processing of 

procurement source receipts.”

(2) Revisions to DLM 4000.25, DLMS, Volume 2, Chapter 12, Due-In and 

Advance Receipt Information, and Chapter 13, Materiel Receipt

(a) Administrative update. Make an administrative update throughout 

Chapters 12 and 13 to change “Advance Receipt Information (ARI)” to “Prepositioned Materiel 

Receipt (PMR)”. This administrative update will also affect the title of Chapter 12. ARI was 

DLMS terminology for PMR, but DLMS procedures are being updated to reflect PMR to remove 

the disconnect between the DLMS and MILSTRAP manuals.

(b) Revise DLM 4000.25, Volume 2, Chapters 12 and 13 as noted: 

“C12.3.1. Due-In Information Requirements. IMMs Owners/managers will provide 

maintenance and storage activities with due-in information for scheduled materiel receipts by 

providing them with ARI PMR transactions. For due-ins from procurement instrument sources, 

IMMs will include applicable contract information and packaging data, to facilitate the receiving 

process and reduce the need for hard copy contracts at the receiving activity. As part of the 

contract information, the IMM will include indicators identifying whether the contract required 

unique identification (UID) or passive Radio Frequency Identification (pRFID). If the 

owner/manager fails to generate a PMR for DLA Distribution Center receipt, the distribution 

center will submit a Supply Discrepancy Report to the owner/manager.”

(intervening text not shown)

“C13.2.8.2.8.11. Receipts Not Due-In (no ARI PMR file exists). When a PMR is not 

available, the receiving activity will report the receipt using documentation, packaging, and 

other information, as available. DLA Distribution Centers will prepare an SDR to report the 

lack of a PMR to the manager (as the only discrepancy or in combination with other identified 

discrepancies). The distribution center will identify the SDR as informational or otherwise 

indicate requested action.

(intervening text not shown)

“C13.2.8.2.10.1.1. No ARI PMR File Exists. When a PMR is not available, the receiving 

activity will report the receipt using documentation, packaging, and other information, as 

available. DLA Distribution Centers will prepare an SDR to report the lack of a PMR to the 

manager (as the only discrepancy or in combination with other identified discrepancies). The 

distribution center will identify the SDR as informational or otherwise indicate requested 

action. When inspection of inter-DoD Component receipts reveals materiel to be SCC H and no 

ARI PMR file exists, automatically ship discrepant materiel valued at less than $500 per item 

direct to the DLA Disposition Services activity except as specified in these procedures, or take 

other automatic disposal action based on criteria issued by the DoD Components. This includes 

expired Type I shelf-life materiel which has passed the expiration date regardless of value. 

When taking automatic disposal action, cite SCC H and Management Code M or T in the 

Receipt Transaction, in addition to the discrepant receipt management code, for the discrepant 

quantity. To establish an audit trail when materiel is condemned upon receipt and shipped 
Attachment, ADC 1221

Page 5

directly to DLA Disposition Services, cite the disposal turn-in document number in the Receipt 

Transaction in addition to the original document number.”

(3) Revise DLM 4000.25-2 MILSTRAP, Chapter 4, Receipt and Due-In:

“C4.3.1. Owners/Managers will transmit advance notification of scheduled materiel 

receipts to maintenance and storage activities. Use PMRs, prepared in the appendix AP3.38 or 

AP3.39 format and identified by DICs in the DU or DW series, for this purpose. If the 

owner/manager fails to generate a PMR for DLA Distribution Center receipts, the distribution 

center will submit a Supply Discrepancy Report to the owner/manager. The distribution 

center will identify the SDR as informational or otherwise indicate requested action.”

(intervening text not shown)

“C4.9.2.5.11. Procurement Receipts Not Due-in. (No PMR/due is recorded). When a 

PMR is not available, the receiving activity will report the receipt using documentation, 

packaging, and other information, as available. DLA Distribution Centers will prepare an 

SDR to report the lack of a PMR to the manager (as the only discrepancy or in combination 

with other identified discrepancies). The distribution center will identify the SDR as 

informational or otherwise indicate requested action. See C4.9.2.5.3. and C4.9.2.5.4. for 

processing receipts of misdirected shipments and overages/duplicate shipments, for which PMRs 

are not normally available.”

(intervening text not shown)

“C4.9.3.3.11. Receipts Not Due-In (no PMR/due-in recorded). When a PMR is not 

available, the receiving activity will report the receipt using documentation, packaging, and 

other information, as available. DLA Distribution Centers will prepare an SDR to report the

lack of PMR to the owner (as the only discrepancy or in combination with other identified 

discrepancies). The distribution center will identify the SDR as informational or otherwise 

indicate requested action. 

e. Transaction Flow: Standard SDR process applies. For non-procurement source 

receipts, the SDR will be sent to the owner for action and a distribution copy will be provided to 

the shipping activity when available.

f. Alternatives: None identified.

5. REASON FOR CHANGE: The PMR is important to support Financial Improvement and 

Audit Readiness (FIAR) requirements for “Rights and Obligation” and assists the distribution 

center in receipting materiel into the correct ownership, which supports materiel accountability. 

The use of an informational SDR will assist owners/managers in monitoring their performance 

on generating PMRs and potentially identify problem areas. This policy change documents a 

DLA-directed requirement for distribution centers to generate informational SDRs.
Attachment, ADC 1221

Page 6

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: The use of SDRs will provide improved visibility of the frequency of 

materiel arriving at DLA Distribution without a PMR from each activity. This will allow 

owners/managers to target and improve the generation of a PMR prior to shipment of materiel. 

b. Disadvantages: Some Components still have issues in fully complying with 

MILSTRAP requirements for generating a PMR due to resource constraints, higher priority 

system changes, and use of legacy systems. Use of SDRs to identify missing PMRs requires an 

expenditure of resources by DLA, the owner/manager, and potentially, the shipping activity, that 

may not be effective in correcting this situation.

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET:

a. The DLA Distribution Standard System (DSS) implemented a system change on April 

24, 2016 that systemically searches for a PMR during receipt processing and prompts the user for 

generation of an SDR if no PMR is found. Minor update is needed to use Discrepancy Code 3B 

(rather than the currently used Action Code 1H (no action required; information only)). This 

change should occur no later than three months after approval of this change.

b. Estimated completion date for the new WebSDR report is six months from approval 

of this change.

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: Generating informational SDRs for no PMR will 

assist in identifying and quantifying the amount of materiel being inducted without a PMR. Use 

of a PMR in the receipt process allows for a faster induction time and assists in ensuring that 

materiel is placed in the proper ownership. Reducing errors in receipting materiel in the proper 

ownership is a cost avoidance savings. Correcting ownership mistakes is a time consuming 

endeavor by the materiel owner and DLA Distribution Centers to conduct research and 

subsequent generation of a ship in-place materiel release order.

9. IMPACT:

a. New DLMS Data Elements: None.

b. Changes to DLMS Data Elements: None.

c. Automated Information Systems (AIS): Minor update to DSS to use the more 

appropriate Action Code 3B to denote the discrepancy reported for corrective action and trend 

analysis; no reply required.

d. Transaction Services: WebSDR will be required to generate and disseminate 

monthly report for SDRs identify missing PMRs (Discrepancy Code Z3) as described above.

e. Non-DLM 4000.25 Series Publications: Internal Component guidance may need to 

be updated.
Attachment, ADC 1221

Page 7

10. PROPOSED DLMS CHANGE (PDC) 1221 STAFFING RESPONSE/COMMENT 

RESOLUTION:

Originator Response/Comment Disposition

1. DLA Concur Noted.

2. Navy Concur Noted.

3. Marine Corps Concur Noted.

4. Army Concur

CECOM concurs with PDC 1221, Mandatory SDR for DLA 

Distribution Center Receipts with no PMR with the management 

WEB SDR reports improvements which will allow the fault 

recognition, assist management improve Due-in (PMR) 

reporting. Materiel identification and better receipt processes 

will also help improve our supply chain effectiveness and cost 

avoidance. 

Noted.